Q4 2024 Earnings Call Presentation Matt Calkins, Founder & CEO Mark Lynch, Interim CFO Disclaimer. In this presentation, we may make statements related to our business that are forward-looking statements under federal securities laws and are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements related to our financial results, trends and guidance for the first quarter and full year 2025, the impact of macroeconomic changes, the benefits of ...

Financial Data and Key Metrics Changes - In Q4 2024, Appian Corporation's cloud subscription revenue grew 19% to $98.9 million, while total revenue increased 15% to $166.7 million [7][40] - For the full year 2024, cloud subscription revenue reached $368 million, representing a 21% growth year over year [47] - Adjusted EBITDA for Q4 was positive $21.2 million, significantly above guidance [43] - Non-GAAP gross margin was 80% in Q4, the best performance since the IPO [8][42] Business Line Data and Key Metrics Changes - Subscriptions revenue grew by 18% to $136.8 million in Q4, with subscriptions revenue representing 82% of total revenue [38][40] - Professional services revenue was $29.9 million, a slight increase of 1% year over year, but expected to decline as a percentage of total revenue over the long term [39][40] Market Data and Key Metrics Changes - International operations contributed 35% of total revenue, a slight decrease from 36% in the previous year [41] - Cloud software net new ACV bookings were approximately 65% of total net new software bookings in Q4, down from 80% in the prior year [41] Company Strategy and Development Direction - Appian Corporation aims to leverage AI to enhance process automation, emphasizing the integration of AI within existing workflows [10][11] - The company is focusing on upselling existing customers and expanding its product offerings, with two-thirds of customers purchasing more software in 2024 [31][32] - The strategic priority for 2025 is to maintain a focus on core principles, market identity, and operational rigor [35] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding opportunities in the public sector amidst uncertainty in federal spending [61][62] - The company anticipates a return to a more typical revenue mix of 80% cloud and 20% on-premise in the upcoming year [62] - Management highlighted the importance of demonstrating the practical value of AI to customers, aiming for a more structured approach to AI deployment [66] Other Important Information - The company plans to remove foreign exchange gains and losses from its non-GAAP EPS calculation starting in 2025 [57] - Cash and cash equivalents as of December 31, 2024, were $159.9 million, slightly up from $159 million the previous year [46] Q&A Session Summary Question: What are the underlying assumptions regarding public sector guidance given the uncertainty in US federal spending? - Management feels cautious about the public sector's outlook and cannot predict the impact of federal budget changes [61][62] Question: What can be expected from the product roadmap regarding the agent strategy? - The focus will be on demonstrating the practical value of agents within structured processes, aiming for a more intuitive approach to AI [66] Question: How does Appian Corporation's approach to AI differ from competitors? - Appian Corporation emphasizes embedding AI directly into workflows rather than treating it as a separate entity, positioning it at the center of work processes [71][72] Question: What are the trends in demand across core verticals? - Performance and pipeline were evenly distributed among key verticals: financial services, public sector, insurance, and life sciences [83] Question: How is pricing evolving around AI agents? - Agents will be priced by usage, with a current strategy to subsidize their use to encourage adoption [88]

Core Insights - Appian demonstrated strong revenue growth and exceeded earnings expectations despite challenges in professional services revenue [1][2] - The company reported a breakeven Non-GAAP EPS, overcoming an anticipated loss, with total revenue of $166.7 million, slightly above expectations [2][3] Financial Performance - Total revenue for Q4 2024 was $166.7 million, a 14.7% increase from $145.3 million in Q4 2023 [3] - Cloud subscription revenue reached $98.9 million, reflecting a 19.0% year-over-year growth from $83.1 million [3] - Adjusted EBITDA surged to $21.2 million, a dramatic increase of 2020.0% compared to the previous year [3][7] - The company transitioned from a GAAP operating loss to a GAAP operating income of $5 million in Q4 [7] Business Overview - Appian is a leader in low-code solutions, integrating AI and process automation to enhance operational efficiency for enterprises [4] - The company has focused on expanding its cloud subscription offerings and improving go-to-market strategies, particularly in sectors like government and financial services [5] Challenges and Areas for Improvement - Professional services revenue showed minimal growth of just 1% for the quarter and a decline of 5% for the full year, indicating a need for strategic focus [8] - The net loss included $14.3 million in foreign currency losses, highlighting external market challenges [8] Future Outlook - Management forecasts a 14% growth in cloud subscription revenue and a 10% increase in total revenue for 2025 [10] - Expectations for further improvements in adjusted EBITDA and non-GAAP net income per share reflect confidence in ongoing strategic enhancements [10]

Core Insights - Appian (APPN) reported break-even quarterly earnings per share, exceeding the Zacks Consensus Estimate of a loss of $0.01, and compared to earnings of $0.06 per share a year ago, representing an earnings surprise of 100% [1] - The company posted revenues of $166.69 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.59%, and this is an increase from year-ago revenues of $145.32 million [2] - Appian has surpassed consensus EPS estimates three times over the last four quarters and topped consensus revenue estimates four times in the same period [2] Earnings Outlook - The sustainability of Appian's stock price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the coming quarter is $0.03 on revenues of $164.44 million, and for the current fiscal year, it is $0.17 on revenues of $678.87 million [7] Industry Context - The Internet - Software industry, to which Appian belongs, is currently in the top 33% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Appian's stock performance [5][6]

Exhibit 99.1 Appian Announces Fourth Quarter and Full Year 2024 Financial Results Fourth quarter cloud subscription revenue increased 19% year-over-year to $98.9 million Full year cloud subscription revenue increased 21% year-over year to $368.0 million McLean, VA – February 19, 2025 – Appian (Nasdaq: APPN) today announced financial results for the fourth quarter and full year ended December 31, 2024. "In 2024, Appian demonstrated its ability to grow with increasing efficiency. We specialize in creating val ...

Fourth quarter cloud subscription revenue increased 19% year-over-year to $98.9 millionFull year cloud subscription revenue increased 21% year-over year to $368.0 million MCLEAN, Va., Feb. 19, 2025 (GLOBE NEWSWIRE) -- Appian (Nasdaq: APPN) today announced financial results for the fourth quarter and full year ended December 31, 2024. “In 2024, Appian demonstrated its ability to grow with increasing efficiency. We specialize in creating value with AI, by deploying it in a process. While others bring work to ...

The market expects Appian (APPN) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on February 19, 2025, might help the stock move higher if these key numbers are b ...

MCLEAN, Va., Jan. 15, 2025 (GLOBE NEWSWIRE) -- Appian (Nasdaq: APPN) today announced that it will release financial results for the fourth quarter and full year ended December 31, 2024, before the U.S. financial markets open on Wednesday, February 19, 2025. The company will host a conference call and live webcast to review its financial results and business outlook. Conference Call Details The conference call will begin at 8:30 a.m. Eastern Time. To access the call, please use this Registration Link. Once r ...

Appian (APPN) is a Zacks Rank #1 (Strong Buy) that has a F for Value and an C for Growth.  process management, case management and mobile application development.  The story here is a consistent growth and a flip to profitability in 2025.DescriptionAppian Corporation provides low-code software development platform which enables organizations to develop various applications primarily in the United States and internationally. The Company's products include business process management software, case management ...

Market Outlook - The market is expected to experience a reversion in 2025, with large-cap growth stocks that saw strong momentum in 2024 likely to undergo a correction, bringing their valuation multiples closer to historical medians [1] - Smaller-cap stocks are positioned differently, though the article does not provide specific details on their outlook [1] Analyst Background - The analyst, Gary Alexander, has extensive experience covering technology companies on Wall Street and working in Silicon Valley, providing him with deep insights into industry trends [1] - He also serves as an outside adviser to several seed-round startups, further enhancing his understanding of emerging themes in the industry [1] - Gary Alexander has been a regular contributor on Seeking Alpha since 2017 and his work is syndicated to popular trading apps like Robinhood [1]